I think that the highest rate of income tax in USA is 35%? But don't people have to pay an additional state?
tax as well? Which would bring the real rate to a higher level? I'm confused!
- JudyLv 71 decade agoFavorite Answer
Most states also have a state income tax, and some areas also have a local income tax. These are additional to federal, and at the highest bracket could add anywhere from a few % to around 10% for CA and 11% for Hawaii.
- Anonymous1 decade ago
Yes, the pay state tax, some even pay a city tax ( NY for example). Then there's sales tax which takes a pretty good bite. And real estate tax if you own a home
- troLv 71 decade ago
but the states that have income tax, yes, that tax is figured separately from the Fed and each state is different